By Roger Choudhury, Lead Editor
Here, we review the February 24th buy and sell recommendations of Jim Cramer, host of Mad Money on CNBC. Since then, for comparison purposes, the S&P 500 is up 0.17% and the Dow is up 0.54%. For another review of Cramer's picks, see our article from earlier this week. Our goal is to see through the hype and give readers an accurate looks at Cramer's performance.
Cramer Buy Recommendations
ConocoPhillips (COP) is up 1.4% since February 24. In 2010, the company made a GAAP EPS of $7.62, which was an increase of 135.19% from $3.24 in 2009. In 2008, that figure stood at - $11.16. In 2010, revenues grew by 29.98% to $198.65 billion, after dropping by 37.92% in 2009. EBT margins also improved in 2010 to 9.94% from 6.56% in 2009. For 2011, the Street expects proforma EPS to come in between $6.28 and $9.21. Proforma EPS in 2010 was $5.92. The next earnings release is scheduled for April 25, with analysts expecting a range from $1.45 to $2.26. In Q1 2010, proforma EPS came in at $1.47.
COP shares trade with a price to sales multiple of 0.6. This is the company’s second highest multiple since 2001. The debt to equity ratio is 0.33. This company also has significant exposure in Saudi Arabia. For more details, click here.
Deere (DE) is +5.6% since February 24. In FY 2010 through October, the company posted a GAAP EPS of $4.35, which was an increase of 111.17%, after dropping by 56.17% in FY 2009. Revenues grew by 12.51% in FY 2010 to $26 billion, after shrinking by 18.73% in FY 2009. EBT margins also improved in FY 2010 to 11.63%, after skating by 5.80% in FY 2009.
For FY 2011, analysts expect proforma EPS to come in between $5.96 and $6.71. In 2010, this figure was $4.66. The company already made $1.20 in proforma earnings per share in Q1 2011, which is 110.5% better than Q1 2010’s showing of $0.57.
The next earnings announcement would be on May 18. The Street expects proforma EPS for Q2 2011 to lie between $1.88 and $2.27. In comparison, proforma EPS in Q2 2011 was $1.58. DE shares trade with a P/S multiple of 1.4. This is the highest it has been, since 2007 produced a multiple of 1.8.
Now here’s a bold and bullish call. However, Bank of America (BAC) is down 4.8% since February 24. In 2010, the company made a GAAP EPS of -$0.37, which is worse than 2009’s - $0.29. In 2008, that figure was $0.54. Revenues declined by 7.88% to $110.2 billion, after jumping by 64.39% in 2009.
For 2011, the Street expects proforma EPS to be between $1.05 and $1.75. In 2010, proforma EPS was $0.86. Q1 2011 results are released on April 15, and the Street estimates proforma EPS would be between $0.15 and $0.44. In comparison, Q1 2010 posted a proforma EPS of $0.28.
Company shares trade with a P/S of 1.2. In its heyday not too long ago, that multiple was in the low 3’s.
United Technologies (UTX) is flat since February 24. In 2010, the company generated an EPS of $4.74, which was +15.05%, after -15.92% in 2009. Revenues also grew by 2.66% in 2010, after falling by 9.82% in 2009. EBT margins improved somewhat to 12.03%, after showing 10.88% in 2009.
In 2011, analysts expect EPS to be within a tight range from $5.30 to $5.45. The company expects it to be between $5.20 and $5.35. Q1 2011 results are revealed on April 11, with analysts expecting between $1.02 and $1.10 in EPS. In comparison, Q1 2010 produced $0.93 in EPS.
UTX trades with a price to sales multiple of 1.4, which is the second highest multiple since 2003 and highest since 2007.
The company is a member of the Dow 30. For more info on the future performance of the Dow 30, see “All Dow Jones Industrials: Sneak Peek at Spring Earnings.” Also, read about UTX’s management team and its 2010 revenue breakdown here.
Chart Industries (GTLS) is up 34.7% since February 24. In 2010, the GAAP EPS was $0.69, which was a drop of 67.30%, after also falling by 22.43% in 2009. Revenues fell by 6.10% in 2010 to $555 million, after tumbling by 20.53% in 2009. The 2010 EBT margin was razor thin at 5.13%, but it was more wholesome in 2009 and 2008 with 14.29% and 14.72%, respectively.
In 2011, the Street expects proforma EPS to come in between $1.73 and $2.10. The figure for 2010 was $0.87. Q1 2011 results are released on April 29, with analysts estimating between $0.24 and $0.43. In comparison, Q1 2010 drew in $0.09 in proforma EPS.
GTLS currently trades with a P/S of 2.7. This is the highest multiple ever for these shares. Chart Industries is a leading independent global manufacturer of highly engineered equipment used in the production, storage and end-use of hydrocarbon and industrial gases. The majority of the company's products are used throughout the liquid gas supply chain for purification, liquefaction, distribution, storage and end-use applications, the largest portion of which are energy-related. Chart has domestic operations located throughout the United States, including its principal executive offices located in Garfield Heights, Ohio, and an international presence in Asia, Australia and Europe.
SandRidge Energy (SD) is +29.2% since February 24. In 2010, GAAP EPS was $0.52, after a bad turnout in 2009 with - $10.20. Revenues shot up by 57.64% to $932 million, after dropping nearly 50% in 2009.
In 2011, the Street forecasts proforma EPS to be between - $0.25 and $0.47. In 2010, proforma EPS was $0.11. On May 2, Q1 2011 results are released. Analysts expect between - $0.08 and $0.09. In comparison, Q1 2010 produced $0.01.
SD shares trade with a P/S multiple of 4.0. In 2007, the figure was 5.8. However, the company has a debt to equity ratio of 1.9.
On the other hand, we believe the company has undervalued natural gas reserves.
Tanger Factory Outlet Centers (SKT) is down by 3.4% since February 24. In 2010, GAAP EPS shrunk by 55.56% to $0.32, after doing well in 2009 by increasing 102.82%. In 2010, revenues grew slightly by 1.7% to $276 million, after +10.72% in 2009. The margin for income before equity in earnings of unconsolidated joint ventures and discontinued operations was 21.6%.
In 2011, 3 analysts expect proforma EPS to be between $0.59 and $0.62. The figure in 2010 was $0.35. Q1 2011 results also come out on April 25, with forecasts between $0.13 and $0.16. In comparison, Q1 2010 proforma EPS was $0.73.
SKT shares trade with a P/S of 7.3, which is the highest multiple from 2001 onwards. The company has a debt to equity ratio of 1.95.
Tanger Factory Outlet Centers is one of the largest owners and operators of outlet centers in the US. The company is a fully-integrated, self-administered and self-managed REIT, which focuses exclusively on developing, acquiring, owning, operating and managing outlet shopping centers. As of December 31, 2010, it owned and operated 31 outlet centers, with a total gross leasable area of approximately 9.2 million square feet. These outlet centers were 98% occupied and contained over 2,000 stores, representing approximately 360 store brands. The company also operated and had partial ownership interests in two outlet centers totaling approximately 948,000 square feet.
Deckers Outdoor (DECK) is down 4.8% since February 24. In 2010, EPS was $4.03, which was growth of 36%, after rising by 58.75% in 2009. Revenues rose in kind by 23.10% to $1 billion, after +17.95% in 2009 and +53.58% in 2008. EBT margins are also healthy: in 2010, it was 24.99% in 2010 and 22.53% in 2009.
In 2011, analysts expect EPS to be between $4.43 and $5.03. The next earnings release is on April 20, with analysts predicting a range from $0.44 to $0.53 for Q1 2011. EPS came in at $0.46 in Q1 2010. DECK trades with a price to sales multiple of 3.3. In 2007, that figure was 4.5. Because the company has no debt, these shares are undervalued.
Salesforce.com (CRM) is down 3.1% since February 24. In FY 2011 through January, GAAP EPS was $0.47, was a drop of 25.4%, after +80% in FY 2010. However, revenues were up by 26.93%, after +21.24% in FY 2010 and +43.82% in FY 2009. The EBT margin in FY 2011 was 6.29%, which was lower than FY 2010’s 10.91%.
In FY 2012, the Street expects proforma EPS to be between $1.34 and $1.42. The figure for FY 2011 was $1.22. The next expected report date is May 18. Analysts expect proforma EPS in Q1 2012 to be between $0.26 and $0.29. In comparison, Q1 2011 produced a proforma EPS of $0.30. CRM trades with a P/S of 10.6. From 2004 to 2007, the respective multiples were 12.9, 13.8, 9.4, and 11.8. The company has a manageable debt to equity ratio of 0.39.
Cramer Sell Recommendation
Clorox (CLX) is up 3.2% since February 24. In FY 2010 through June, the company made a GAAP EPS of $4.24, which was +11.29%, after +17.59% in FY 2009. Additionally, revenues crept up by 1.54% in FY 2010, after +3.36% in FY 2009. EBT margins were 16.71% in FY 2010 and 14.88% in FY 2009.
However, in FY 2011, analysts expect proforma EPS to be between $3.85 and $4.01. The company expects from $3.85 to $4.00. That figure in FY 2010 was $4.24. In the first 6 months of FY 2011, the company posted a proforma EPS of $1.66, which was lower than $1.88 for the same period in FY 2010.
The next earnings release is on May 2. The Street forecasts proforma EPS to be between $1.00 and $1.11. In comparison, Q3 2010 produced a proforma EPS of $1.16. CLX shares trade with a P/S of 1.8. From 2001 to 2007, those multiples were 2.4, 2.3, 2.5, 2.8, 2.1, 2.1, and 1.9, respectively. However, the company has a HIGH debt to equity ratio of 17.14 with a current ratio of 1.14. Nevertheless, CLX shares have a current yield of 3.2%. Investors of record on April 25 receive $0.55 per share on May 13.